Bakers Footwear Group (BKRS)

 

On January 29, 2006, the beginning of fiscal year 2006, we adopted SFAS No. 123R, Share-Based Payment, (SFAS 123R) which requires us to recognize compensation expense for stock-based compensation based on the grant date fair value. Stock-based compensation expense is then recognized ratably over the service period related to each grant. We used the modified prospective transition method under which financial statements covering periods prior to adoption have not been restated. We determine the fair value of stock-based compensation using the Black-Scholes option pricing model, which requires us to make assumptions regarding future dividends, expected volatility of our stock, and the expected lives of the options. Under SFAS 123R we also make assumptions regarding

 

On January 29, 2006, the beginning of fiscal year 2006, we adopted SFAS No. 123R, Share-Based Payment, (“SFAS 123R”) which requires us to recognize compensation expense for stock-based compensation based on the grant date fair value. Stock-based compensation expense is then recognized ratably over the service period related to each grant. We used the modified prospective transition method under which financial statements covering periods prior to adoption have not been restated. We determine the fair value of stock-based compensation using the Black-Scholes option pricing model, which requires us to make assumptions regarding future dividends, expected volatility of our stock, and the expected lives of the options. Under SFAS 123R we also make assumptions regarding the number of options and the number of shares of restricted stock and performance shares that will ultimately vest. The assumptions and calculations required by SFAS 123R are complex and require a high degree of judgment. Assumptions regarding the vesting of grants are accounting estimates that must be updated as necessary with any resulting change recognized as an increase or decrease in compensation expense at the time the estimate is changed. SFAS 123R also requires that excess tax benefits related to stock option exercises be reflected as financing cash inflows and operating cash outflows.

 

Prior to January 29, 2006, we followed APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for our stock options and the disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based Compensation, (“SFAS 123”). Under APB Opinion No. 25, compensation expense is recognized over the vesting period based on the amount by which the fair value of the underlying common stock exceeds the exercise price of stock options at the date of grant. The adoption of SFAS 123R resulted in no significant change in the determination of stock-based compensation expense compared to our previously disclosed pro forma stock-based compensation expense determined using SFAS 123.

 

During fiscal year 2006 and fiscal year 2007, we made grants of performance shares under our 2005 Incentive Compensation Plan. Based upon the degree of achievement of performance objectives for net sales and return on average assets through performance periods through fiscal year 2009, we will issue a total of between zero and 204,534 shares of common stock under these performance share grants. During fiscal year 2007, we granted 69,000 shares of restricted stock under our 2005 Incentive Compensation Plan. During fiscal year 2005, 2006 and 2007, we granted 205,200, 91,728, and 272,613 stock options, respectively, under our 2003 Stock Option Plan.

 

As of February 2, 2008, the total unrecognized compensation cost related to non vested stock-based compensation is $1,629,402, and the weighted-average period over which this compensation is expected to be recognized is 1.8 years.

 

 

On January 29, 2006, the beginning of fiscal year 2006, we
adopted SFAS No. 123R, Share-Based Payment,
(“SFAS 123R”) which requires us to recognize
compensation expense for stock-based compensation based on the
grant date fair value. Stock-based compensation expense is then
recognized ratably over the service period related to each
grant. We used the modified prospective transition method under
which financial statements covering periods prior to adoption
have not been restated. We determine the fair value of
stock-based compensation using the Black-Scholes option pricing
model, which requires us to make assumptions regarding future
dividends, expected volatility of our stock, and the expected
lives of the options. Under SFAS 123R we also make
assumptions regarding the number of options and the number of
shares of restricted stock and performance shares that will
ultimately vest. The assumptions and calculations required by
SFAS 123R are complex and require a high degree of
judgment. Assumptions regarding the vesting of grants are
accounting estimates that must be updated as necessary with any
resulting change recognized as an increase or decrease in
compensation expense at the time the estimate is changed.
SFAS 123R also requires that excess tax benefits related to
stock option exercises be reflected as financing cash inflows
and operating cash outflows.

 

Prior to January 29, 2006, we followed APB Opinion
No. 25, Accounting for Stock Issued to Employees,
and related interpretations in accounting for our stock options
and the disclosure-only provisions of SFAS No. 123,
Accounting for Stock-Based Compensation,
(“SFAS 123”). Under APB Opinion No. 25,
compensation expense is recognized over the vesting period based
on the amount by which the fair value of the underlying common
stock exceeds the exercise price of stock options at the date of
grant. The adoption of SFAS 123R resulted in no significant
change in the determination of stock-based compensation expense
compared to our previously disclosed pro forma stock-based
compensation expense determined using SFAS 123.

 

During fiscal year 2006 and fiscal year 2007, we made grants of
performance shares under our 2005 Incentive Compensation Plan.
Based upon the degree of achievement of performance objectives
for net sales and return on average assets through performance
periods through fiscal year 2009, we will issue a total of
between zero and 204,534 shares of common stock under these
performance share grants. During fiscal year 2007, we granted
69,000 shares of restricted stock under our 2005 Incentive
Compensation Plan. During fiscal year 2005, 2006 and 2007, we
granted 205,200, 91,728, and 272,613 stock options,
respectively, under our 2003 Stock Option Plan.

 

As of February 2, 2008, the total unrecognized compensation
cost related to non vested stock-based compensation is
$1,629,402, and the weighted-average period over which this
compensation is expected to be recognized is 1.8 years.

 

 

On January 29, 2006, the beginning of fiscal year 2006, we adopted SFAS No. 123R, Share-Based Payment, (“SFAS 123R”) which requires us to recognize compensation expense for stock-based compensation based on the grant date fair value. Stock-based compensation expense is then recognized ratably over the service period related to each grant. We used the modified prospective transition method under which financial statements covering periods prior to adoption have not been restated. We determine the fair value of stock-based compensation using the Black-Scholes option pricing model, which requires us to make assumptions regarding future dividends, expected volatility of our stock, and the expected lives of the options. Under SFAS 123R we also make assumptions regarding the number of options and the number of shares of restricted stock and performance shares that will ultimately vest. The assumptions and calculations required by SFAS 123R are complex and require a high degree of judgment. Assumptions regarding the vesting of grants are accounting estimates that must be updated as necessary with any resulting change recognized as an increase or decrease in compensation expense at the time the estimate is changed.

 

Prior to January 29, 2006, we followed APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for our stock options and the disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based Compensation, (“SFAS 123”). Under APB Opinion No. 25, compensation expense is recognized over the vesting period based on the amount by which the fair value of the underlying common stock exceeds the exercise price of stock options at the date of grant. Adoption of the expensing requirements of SFAS 123R will reduce the Company’s reported earnings in future periods. The adoption of SFAS 123R resulted in no significant change in the determination of stock-based compensation expense compared to our previously disclosed pro forma stock-based compensation expense determined using SFAS 123.

 

During fiscal year 2006, we made our initial grants of performance shares under our 2005 Incentive Compensation Plan. Previously, all share based compensation was in the form of stock options. Based upon the degree of achievement of performance objectives for net sales and return on average assets through fiscal year 2008, we will issue a total of between zero and 68,274 shares of common stock under these performance share grants. We also granted 91,728 stock options during fiscal year 2006. We granted 205,200 stock options during the fiscal year 2005.

 

As of February 3, 2007, the total unrecognized compensation cost related to non vested stock-based compensation is $1,272,510, and the weighted-average period over which this compensation is expected to be recognized is 1.5 years.